Thermo Electron to Acquire SPX Unit

Photonics.comJan 2005
WALTHAM, Mass., Jan. 19 --- Thermo Electron Corp. announced today it will acquire the Kendro Laboratory Products division of SPX Corp. for $833.5 million in cash, subject to a post-closing balance sheet adjustment. Thermo has received a commitment for a credit facility of $600 million to finance a portion of the purchase price. The transaction is subject to regulatory approvals and other customary closing conditions.

Kendro makes a variety of laboratory equipment for sample preparation, processing and storage used primarily in life sciences and drug discovery laboratories and in clinical laboratories. Its 2004 sales were estimated at $375 million. The company is based in Asheville, N.C., and has more than 1600 employees worldwide. The company has extensive manufacturing and design facilities in the US and in Germany, and direct sales, service and support operations throughout Europe, North America and Asia.

Kendro's centrifuges, Sorvall and Heraeus, are used in biochemistry, molecular biology, virology, diagnostics and other clinical and research applications. Its thermal equipment includes ovens, incubators, freezers and refrigerators for research and industrial applications, marketed under the brands Revco and Jewett. Kendro also provides technical and validation services and biorepositories for sample storage and laboratory relocation management.

Marijn E. Dekkers, president and CEO of Thermo Electron, said, "Like Thermo, Kendro enjoys a rich history and culture of innovation based on addressing the unique and changing needs of customers. The combined company allows us to deliver even greater value to our customers by creating a broader offering of laboratory and sample preparation technologies, as well as enhanced laboratory service capabilities."

Dekkers said, "This acquisition provides an attractive financial profile for Thermo Electron in terms of earnings and cash flow generation. This transaction also underscores our intent to use acquisitions to gain access to technologies that are of interest to our customers."